In this article, we discuss the 5 very cheap stocks to buy right now. If you want to read our detailed analysis of these stocks, go directly to the 10 Very Cheap Stocks to Buy Right Now.
5. Pacific Biosciences of California, Inc. (NASDAQ:PACB)
Number of Hedge Fund Holders: 27
Real-Time Share Price as of December 12: $20.88
Pacific Biosciences of California, Inc. (NASDAQ:PACB) develops sequencing systems for complex genetic problems. The company recently beat market estimates on earnings per share and revenue for the third quarter by $0.01 and $1.2 million respectively.
In September, Canaccord analyst Kyle Mikson initiated coverage of Pacific Biosciences of California, Inc. (NASDAQ:PACB) stock with a Buy rating and a price target of $45, noting the potential of the “differentiated” tech of the firm in the sequencing domain compared to peers.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Pacific Biosciences of California, Inc. (NASDAQ:PACB) with 22 million shares worth more than $580 million.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Pacific Biosciences of California, Inc. (NASDAQ:PACB) was one of them. Here is what the fund said:
“Pacific Biosciences of California, Inc. provides long-read DNA sequencing systems to scientists conducting genetic analysis. Shares performed well for the quarter. We believe there is increasing excitement about the potential for its platform to move beyond research into clinical applications. The recently appointed CEO was previously Chief Commercial Officer at Illumina, and we think he is well qualified to commercially execute on Pacific Biosciences’ differentiated long-read platform.”
4. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 31
Real-Time Share Price as of December 12: $8.85
Sabre Corporation (NASDAQ:SABR) provides technology solutions for the travel industry. The firm recently entered into a multi-year partnership with payments giant American Express to develop technologies for corporate travel distribution.
Sabre Corporation (NASDAQ:SABR) posted earrings for the third quarter in early November, beating estimates on earnings per share by $0.05. The revenue over the period was $441 million, up 58% year-on-year.
At the end of the third quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $877 million in Sabre Corporation (NASDAQ:SABR), compared to 37 in the preceding quarter worth $972 million.
3. Flex Ltd. (NASDAQ:FLEX)
Number of Hedge Fund Holders: 35
Real-Time Share Price as of December 12: $17.29
Flex Ltd. (NASDAQ:FLEX) provides electronic manufacturing and supply chain services. In October, the company had announced the acquisition of Anord Mardix, a critical power solutions firm, in a deal worth $450 million as part of a plan to expand in the data center market.
In earnings results for the third quarter, posted on October 27, Flex Ltd. (NASDAQ:FLEX) reported earnings per share of $0.48, smashing predictions by $0.08. The revenue over the period was $6.2 billion, up over 3% year-on-year.
At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Flex Ltd. (NASDAQ:FLEX), compared to 43 the preceding quarter worth $1.4 billion.
In its Q4 2020 investor letter, Sound Shore Management, an asset management firm, highlighted a few stocks and Flex Ltd. (NASDAQ:FLEX) was one of them. Here is what the fund said:
“Our third quarter addition of contract manufacturer Flex provides a great example. Originally an electronics-focused outsource manufacturer with highly cyclical cash flows and short product lifecycles, the company has evolved its customer base toward the capital goods, automotive and healthcare industries. Having successfully recast itself as a longer-cycle, “new industrial,” Flex’s stock is benefitting from more stable and diversified cash flows and more consistent revenue growth. CEO Revathi Advaithi joined in early 2019 and she has refocused the company by accelerating the transition to these longer-cycle businesses. Moreover, the company has been shareholder oriented, using the company’s ample free cash to reduce shares outstanding by 35% in the last decade. Lastly, Flex’s Nextracker division should provide nice upside. The solar tracking company manufactures motors, software and systems for utility-scale power generation projects and business is growing quickly as the shift toward sustainable energy sources hastens. We believe Nextracker is underappreciated and could represent a significant amount of hidden value. At 13 times earnings Flex is a very attractive risk reward opportunity.”
2. Paysafe Limited (NYSE:PSFE)
Number of Hedge Fund Holders: 42
Real-Time Share Price as of December 12: $3.98
Paysafe Limited (NYSE:PSFE) provides digital commerce solutions to online businesses. The stock has climbed more than 4% in the past few days after the CEO of the firm and other high ranking executives purchased shares worth $2.8 million in the firm.
Paysafe Limited (NYSE:PSFE) recently revealed that it had partnered with tech giant Huawei for online cash payments in the Huawei App Gallery. Under the deal, Paysafe will roll out the Paysafecard to consumers in most parts of Europe.
At the end of the third quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $597 million in Paysafe Limited (NYSE:PSFE).
1. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 51
Real-Time Share Price as of December 12: $21.45
Ford Motor Company (NYSE:F) makes and sells automotives. In early December, the company reported sales numbers for November, revealing 5.5% year-on-year sales growth in the US with EV sales growing at over 150%, more than three times the average for the overall EV market.
Ford Motor Company (NYSE:F) stock has rallied in recent weeks after the firm announced plans to be the second-largest electric vehicle producer within two years. The company plans to hit annual production capacity of 600,000 units to achieve that goal.
At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Ford Motor Company (NYSE:F), compared to 55 in the preceding quarter worth $2.1 billion.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”
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